ISLAMABAD: The Federal Board of Revenue (FBR) must settle tax disputes within 45 days, by government mandate.
According to the circular no. 02 2023-24, significant improvements have been made to streamline the alternative dispute resolution procedure and make it more affordable and effective for taxpayers registered under the Sales Tax Act and Federal Excise Act.
The FBR shall now appoint a committee within 15 days of receiving the request for dispute resolution, as opposed to the prior 45 days, in accordance with the modifications.
The issue must now be resolved by the committee within 45 days, with a 15-day extension allowed with proper justification. The decision was formally required to be made within 120 days.
Now, registered people can provide their conditions for resolving the conflict, including an offer for payment of tax.
This is different from earlier offerings, which were fixed and irrevocable. The third member of the dispute resolution committee, who was formerly chosen by consensus, is now a high court judge-level retired judge. The chair will be chosen by a panel of the Law and Justice Division.
In order to settle the conflict, both the registered person and the commissioner had to drop any appeals that were still pending before the appellate fora.
This requirement is no longer enforceable against either party. The goal of these changes is to make the dispute resolution procedure more streamlined, effective, and equitable for all parties.
Once the committee is established, any tax that the registered person owes in connection with the dispute is regarded to be on hold until the committee issues a decision or disbands.
